Ok I am reading the updates on TN Lien Laws and I read "For home improvement contracts, additional “notice” language must actually be built into the contract between the general contractor and the owner. There are no notice requirements on such projects for parties other than direct contractors." Exactly what language needs to be updated in our contract, or what needs to be added to make sure that we are following state lien laws. I have a bunch of questions, so there will be many more to come below.....
Notice of Commencement Question:
The statement "Residential (Notice of Completion NOT simultaneously recorded and served): Lien and response (if applicable) required within 90 days of actual completion of project.", is this referring to Filing a Notice of Commencement and Notice of Termination at the same time. If not what does this mean?
The Statement "Residential (Notice of Completion Recorded and Served): Lien and response to Notice of Completion required within 10 days of date on which Notice of Completion filed." Does this mean that once a Notice of Completion is filed, we only have 10 days to file a lien? Also are we as the General (Prime)Contrator filing the Notice of Completion or is the owner.
This Statement "Yes, notice is required in Tennessee. As well as recording the Notice of Lien and Sworn Statement with the Register of Deeds in the county in which the property is located, the lien must also be given to the property owner. This may be accomplished by registered or certified mail, return receipt requested." Who sends notice to Property Owner? Is this automatically done through Levelset if lien is filed through levelset. If we file the lien through the county registers office, do they send the lien notice to the HO, or do we need to send this information to the HO?
I just want to make sure that we have procedures in place for and Apex is protected fully by these procedures. As collections manager it is my responsibility to make sure this happens and just want to make sure that I am correct in doing so...
...Read More
Our company has worked with one GC on two different projects. One project was an outdoor project in which the GC demanded that we use a material that we knew was unsuitable for outdoor use and advised them against it because we knew there would be future issues. We have gone back on 3 occasions to fix this project but still, more work is needed long-term due to their misstep. We simultaneously completed a second project with the same GC, to the homeowner's satisfaction and now the GC is withholding payment for the completed job until we repair the other project. We have assured the GC that we would happily assist with the other project once we receive payment for the job we completed but they are still refusing to pay us. Do we have any recourse in the situation? Please note that a preliminary notice was not sent. ...Read More
Hello, I am looking to build a few homes for sale along with custom homes if need be in the state of TN. I have built several houses under the owner builder clause. The house I am living in now I have built. I was reading where I need a financial statement prepared by a CPA, is this easy to get? Also,
A letter of reference from past client/employer. I have been retired for over 6 years and my previous employer was a water district . I'm not sure about financial statement and reference statement
Please respond with clarification...Read More
I Performed work as a Drywall sub Contractor and the Contractor doing the Project will not pay what is owed. He made a Partial Payment but there is a balance owed. I submitted a Lien but it was filled out incorectly and I need to amend it...Read More
I'm a painting contractor. Refinished kitchen and bathroom cabinets for customer. We have a signed contract. They paid $600 materials Deposit, but Never paid the $5700 balance owed for the work. They refused to pay me, then they filed a "poor workmanship" claim with my insurance. My Insurance actually paid them about $11,000 to have the cabinets redone. Bottom line: they Never paid for any of the work. Questions: I filed a mechanics lien. Should I sue to enforce the lien? ALSO: I want to know if this is INSURANCE FRAUD or not?...Read More
I am a sub contractor for a cleaning company for short term rentals I cleaned some cabins for. Cleaning company who hasn’t paid me work was performed in January can I don’t have the name or address of the company can I put a lein on the owner of the property...Read More
My 26 year old son had my husband's (his stepfather's) truck towed to a mechanic's shop to get an estimate to repair the transmission. Over the phone the mechanic shop told my son that it would cost about $2,500 to fix it. The mechanic shop gave him a phone number to call to try to get a loan, if needed, for the repairs. I do not know if the two businesses are affiliated or not. Regardless, he applied via phone, but was rejected. After my husband and son discussed it further they concluded that since the truck is so old, a 1997 Ford F150, and not of much value they would hold off on the repairs so they could try to find an alternative such as a used transmission that the same or another mechanic could install. He has been looking for a used transmission to no avail while the truck stayed at the mechanic's shop. Yesterday, my husband went to pick up the UNREPAIRED truck and the shop owner said that the truck now belonged to him because it was left there so long. He claims that he sent a certified letter regarding the truck, but no one in my household signed for a letter. The shop owner says that he has filed a mechanic's lien and will NOW repair the truck and sell it, or we could buy the truck back from him for $2500. To me there are several major issues. First, no one received or signed any sort of written estimate or contract to fix it. Second, even if the mechanic claims that there was a verbal agreement between him and my son, my son is NOT the titled owner of the truck. So, how could a lien be put on it. Third, the shop owner admitted to my husband in person at the shop that now that he had a lien he WILL fix it and sell it. According to the law I researched, a lien can be placed only for actual work done, not work after a lien is filed. Furthermore, other claims such as storage fees (which were never disclosed or agreed to) are not considered repairs and cannot be included in the lien. The truck is so old and of such little value that no one would invest $2500 in a transmission for it. I guess that is why the mechanic says that he will NOW fix it and sell it after he has gotten the lien. We received no phone calls, no letters, no written docs of any sort (the mechanic claims he sent a certified letter, but no one in my house signed for it.)
How do I proceed?...Read More
The home owner will not allow me to finish my contract job because i did not work two days in a row. Can she do this? There was no deadline in the contract....Read More
My elderly grandfather has contracted construction on property owned by my wife and I. The contractor didn't bill him for five months and now two weeks after billing is threatening to put a lien on our property. I don't have the funds available to cover the contractor and my grandfather. What can I do to protect my family and property? ...Read More
The state of TN. Says a subcontractor can’t lien.
It also says:
similar to North Dakota’s. Those who “furnish materials” may file a mechanics lien, and “Furnish materials” means:
To supply materials that are intended to be and are incorporated in the improvement;
To supply materials that are intended to be and are delivered to the site of the improvement and become normal wastage in construction operations;
To specially fabricate materials for incorporation in the improvement and, if not delivered to the site of the improvement, are not readily resalable by the lienor.
If a Subcontractor also supplied fabricated materials and Invoiced that material separately can he file a lien for the amount of materials?...Read More
We are in a conversation with a large developer to manage the construction of townhomes. They are pulling permits and we would be a subcontractor to them as a construction manager. We would be handling all payments and contracts to venders and subcontractors. They have a questionable payment history on Levelset....Read More
GC of ground up custom residential home, CO received 4-13-23. Remaining sub and material invoices, along with 10% profit are unpaid. Property owners unlawfully and forcibly entered secured home and have taken occupancy. What is my next step?...Read More